HANOVER, Md., Feb. 6, 2013 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) announces revenue for full year 2012 of $243.5 million, as compared to $190.6 million in 2011, an increase of 28%. Net income for 2012 was $1.0 million and included Research and Development expenses of $5.4 million. KEYW increased Research and Development spending by 130% in 2012 versus 2011. Fully-diluted GAAP earnings per share (EPS) was $0.03. Acquisition-related amortization and other one-time expenses reduced 2012 fully-diluted GAAP EPS by $0.42. Adjusted EBITDA (as described below) for 2012 was $33.0 million, or 13.5% of 2012 revenue.
For the fourth quarter of 2012, revenue was $74.2 million and net income was $0.2 million. Fourth quarter 2012 adjusted EBITDA was $10.4 million, or 14% of revenue. During the fourth quarter, KEYW received $125 million in funded contract actions and ended the year with 1,104 employees.
"I am very pleased with KEYW's performance in 2012. Not only did we continue to significantly grow the work we do for our Intelligence Community customers, but we made substantial progress in moving down one of our 'horizontal path' efforts, Project G," commented Leonard Moodispaw, CEO and President of KEYW Corporation. "In addition to engaging our three early adopters, we have also begun the transition to the commercial phase of Project G. And the pipeline of potential customers is still building. I continue to expect 2013 to be a transformational year for KEYW and I am enthusiastic about the opportunities we see in all three of our core focus areas: counter-terrorism, cyber, and geospatial."
As noted, revenue for the fourth quarter of 2012 was $74.2 million, an increase of 48% versus revenue of $50.1 million in the fourth quarter of 2011. The increase was driven by organic growth and the acquisitions of Poole & Associates and Sensage. Net income was $0.2 million in the fourth quarter of 2012 versus $0.3 million in the fourth quarter of 2011. Fourth quarter 2012 fully-diluted GAAP EPS was less than one cent per share. Amortization of acquisition-related intangibles and other one-time expenses reduced fourth quarter fully-diluted GAAP EPS by approximately $0.11.
Adjusted EBITDA, as defined by KEYW, is a non-GAAP measure that is calculated as GAAP net income plus other non-recurring expense, interest expense, income taxes, stock compensation, depreciation, and amortization. We have provided Adjusted EBITDA because we use the measurement internally to evaluate performance and we believe it is a commonly used measure of financial performance in comparable companies. It is provided to help investors evaluate companies on a consistent basis, as well as to enhance an understanding of our operating results. In addition, our board of directors and management use Adjusted EBITDA:
Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or the cash flows from operating activities as a measure of liquidity. Please refer to the table below that reconciles GAAP net income to Adjusted EBITDA.
A conference call has been scheduled to discuss these results on February 6th at 5:00 p.m. (EST). At that time, Management will review the Company's fourth quarter and full year 2012 financial results, followed by a question-and-answer session to further discuss the results.
Interested parties will be able to connect to our Webcast via the Investor page on our website, http://investors.keywcorp.com on February 6, 2013. We encourage people to register for an email reminder about the Webcast on the Event Calendar tab, also found on the Investors page of our website. Interested parties may also listen to the conference call by calling 1-877-853-5645. The International Dial-In access number will be 1-408-940-3868.
An archive of the Webcast will be available on our webpage following the call. In addition, a podcast of our conference call will be available for download from our Investors page of our website at approximately the same time as the webcast replay.
About KEYW
KEYW provides agile cyber superiority, cybersecurity, and geospatial intelligence solutions for U.S. Government intelligence and defense customers and commercial enterprises. We create our solutions by combining our services and expertise with hardware, software, and proprietary technology to meet our customers' requirements. For more information contact KEYW Corporation, 7740 Milestone Parkway, Suite 400, Hanover, Maryland 21076; Phone 443-733-1600; Fax 443-733-1601; E-mail investors@keywcorp.com; or on the Web at www.keywcorp.com. Forward-Looking Statements:
Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to statements about our future expectations, plans and prospects, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "potential," "opportunities", and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to the opportunities and our expectations related to the commercial phase of our Project G efforts and the opportunities in our three core business areas, as well as those risk factors set forth in
our Annual Report on Form 10-K, dated and filed March 15, 2012 with the Securities and Exchange Commission (SEC) as required under the Securities Act of 1934, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KEYW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Year ended
December 31, 2012Year ended
December 31, 2011Three months ended
December 31, 2012Three months ended
December 31, 2011
(Unaudited and in thousands)
Net Income
$1,015
$535
$180
$318
Depreciation
4,369
2,082
1,229
944
Intangible Amortization
21,411
13,410
6,804
5,304
Public Offering and Acquisition Costs
938
588
552
139
Stock Compensation Amortization
3,024
2,829
956
660
Interest Expense
2,307
907
1,017
364
Tax (Benefit) Expense
(86)
218
(338)
233
Adjusted EBITDA
$32,978
$20,569
$10,400
$7,962
THE KEYW HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts)
Three months ended
December 31, 2012Three months ended
December 31, 2011Year ended
December 31, 2012Year ended
December 31, 2011
(Unaudited)
Revenues
Services
$53,180
$37,770
$171,776
$159,748
Integrated Solutions
21,057
12,300
71,744
30,839
Total
74,237
50,070
243,520
190,587
Costs of Revenues
Services
39,739
27,526
125,362
115,343
Integrated Solutions
8,053
6,334
34,365
18,607
Total
47,792
33,860
159,727
133,950
Gross Profit
Services
13,441
10,244
46,414
44,405
Integrated Solutions
13,004
5,966
37,379
12,232
Total
26,445
16,210
83,793
56,637
Operating Expenses
Operating expenses
18,775
9,837
59,189
41,399
Intangible amortization expense
6,804
5,304
21,411
13,410
Total
25,579
15,141
80,600
54,809
Operating Income
866
1,069
3,193
1,828
Non-Operating Expense, net
1,024
517
2,264
1,075
(Loss) Income before Income Taxes
(158)
552
929
753
Income Tax (Benefit) Expense, net
(338)
234
(86)
218
Net Income
$180
$318
$1,015
$535
Weighted Average Common Shares Outstanding
Basic
35,725,283
26,139,832
28,239,945
25,991,914
Diluted
38,836,329
28,001,472
31,152,924
28,903,869
Earnings per Share
Basic
$0.01
$0.01
$0.04
$0.02
Diluted
$0.00
$0.01
$0.03
$0.02
THE KEYW HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts)
December 31,
2012December 31,
2011ASSETS
Current assets:
Cash and cash equivalents
$5,639
$1,294
Receivables
58,482
40,630
Inventories, net
8,739
7,242
Prepaid expenses
1,880
2,511
Income tax receivable
96
27
Deferred tax asset, current
3,149
1,193
Total current assets
77,985
52,897
Property and equipment, net
23,860
8,707
Goodwill
290,861
164,466
Other intangibles, net
53,799
39,002
Deferred tax assets
13,608
2,348
Other assets
2,562
211 TOTAL ASSETS $462,675 $267,631
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$7,254
$4,136
Accrued expenses
8,393
4,370
Accrued salaries & wages
17,770
9,644
Revolver
21,000
49,500
Term note — current portion
5,688
--
Deferred income taxes
1,429
1,591
Total current liabilities
61,534
69,241
Long-term liabilities:
Term note — non-current portion
63,000
--
Non-current deferred tax liabilities
29,700
17,430
Other non-current liabilities
7,413
301 TOTAL LIABILITIES
161,647
86,972
Commitments and contingencies
--
--
Stockholders' equity:
Preferred stock, $0.001 par value; 5 million shares authorized, none issued
--
--
Common stock, $0.001 par value; 100 million shares authorized, 36,135,542 and 25,554,533 shares issued and outstanding
36
26
Additional paid-in capital
292,715
173,371
Retained earnings
8,277
7,262
Total stockholders' equity
301,028
180,659
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $462,675 $267,631
THE KEYW HOLDING CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Year ended
December 31, 2012Year ended
December 31, 2011
Net income
$1,015
$535 Adjustments to reconcile net income to net cash provided by operating activities:
Stock compensation
3,024
2,829
Depreciation/Amortization
25,780
15,492
Loss on disposal of equipment
87
--
Windfall tax benefit from option exercise
(140)
(144)
Deferred taxes
(1,864)
(2,036)
Decrease (increase) in balance sheet items:
Receivables
(8,546)
(1,784)
Inventory
(1,313)
(1,903)
Prepaid expenses
910
1,288
Income tax receivable
(69)
251
Accounts payable
(298)
(2,694)
Accrued expenses
(2,429)
(1,554)
Other balance sheet changes
(2,128)
23 Net cash provided by operating activities 14,029 10,303
Cash flows from investing activities:
Acquisitions, net of cash acquired
(131,392)
(58,573)
Purchase of property and equipment
(10,721)
(3,508)
Proceeds from sale of equipment
--
-- Net cash used in investing activities (142,113) (62,081)
Cash flows from financing activities:
Proceeds from stock issuances
94,451
--
Proceeds from term note
70,000
--
Proceeds from revolver
51,500
79,500
Repayment of debt
(81,312)
(30,000)
Repurchase of stock
(2,948)
(3,079)
Windfall tax benefit from option exercise
140
144
Proceeds from option and warrant exercises
598
712 Net cash provided by financing activities 132,429 47,277
Net increase (decrease) in cash and cash equivalents
4,345
(4,501) Cash and cash equivalents at beginning of period
1,294
5,795 Cash and cash equivalents at end of period $5,639 $1,294 CONTACT: Chris Donaghey
443-733-1600
